For a stronger share of global trade pie

India's trade relations with the world have evolved in the last 25 years. New partnerships have been forged, old ones have been strengthened, but challenges remain

- SHREYA NANDI

Since the beginning of this millennium, India's trade landscape has transformed, with both exports and imports of goods surging by over 12 and 15 times, respectively. This growth has been driven not only by a diversification of product categories but also by an expansion into new geographies, reshaping India's global trade footprint.

For more than two decades now, the United States has held an unshakeable position as India's top trade partner. Since 1999-2000, the US has consistently been India's largest trade partner, the primary destination for exports, and among the top five import sources.

China, which was India's 16th largest trade partner at the turn of the century, is now its second largest, besides being its largest import source.

Alongside the US, European countries such as Germany, Belgium, and the United Kingdom were India's traditional export markets. However, from 1999-2000 onwards, India's trade ties with other regions began to strengthen. Exports to Asia, West Asia, and Africa, particularly to nations like China, Singapore, the United Arab Emirates (UAE), and Japan, gained prominence.

According to the Economic Survey 2023-24, the combined share of developing regions - Asia and Africa - in India's total exports rose from 42.9 per cent in 1999-2000 (FY2000) to 52 per cent in FY24. The UAE, Singapore, China, Russia, and Australia have emerged as major export partners.

The survey also highlighted that the share of India's top 10 export destinations fell from 61.9 per cent in FY2000 to 50.5 per cent in FY2024, signalling the broadening of India's export base.